A company has 2 employees on its payroll, One and Two. Employee One earns a...
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A company has 2 employees on its payroll, One and Two. Employee One earns a salary of S10,000 during the current month and has made $110,000 during the year, prior to the current month. Employee Two earns a salary of $3,500 for the current month and has made $5,000, during the year, prior to the current month. The tax rates for the current year are as follows: FUTA 0 6% on the first $7,000 earned; SUTA 4.0% on the first $7,000 earned; FICA Social Security 6.2% on the first $118,500 earned: FICA Medicare 1.45% of all amounts earned; Employee Income Tax 25% of the gross earnings each period. The employer and employee both contribute $500 each to the company's Medical Insurance program and employees Union Dues for each month deducted by the employer are $100 each for both One and Two. In addition the employer contributes $150 towards each employee's retirement fund Determine for the current month for both One and Two (a) Salaries payable (b) Payroll Tax expense (c) Employee Benefit Expense (d)Total payroll related expense
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